By Nevzat Devranoglu
ANKARA (Reuters) – Turkey’s newly appointed Finance Minister Mehmet Simsek said on Sunday the country had no choice but to return to “rational basis” to ensure a predictable economy of economic development.
President Tayyip Erdogan’s appointment of Simsek to his cabinet on Saturday to address Turkey’s cost of living crisis and other pressures made it clear that he The newly elected government will return to more orthodox economic policies.
At the handover ceremony, Simsek said that the main goal of the new government will be to increase social welfare.
“Transparency, consistency, predictability and compliance with the norms of international law will be fundamental principles for us to achieve this goal,” Simsek said.
“Turkey has no choice but to return to rationality. A rule-based, predictable Turkish economy will be key to achieving the desired prosperity.”
He said, In an environment of increasing global challenges and geopolitical tensions, macro-financial stability will be a priority.
“Establishing fiscal discipline and ensuring price stability for sustainable high growth will be our main objectives,” he said. 2021 and 2021, said bringing Turkey’s soaring inflation down to single digits would be another priority.
“It is critical for the country to bring inflation down to single digits again in the medium term, improve predictability across all sectors and accelerate structural transformation to reduce the current account deficit,” he said.
Annual consumer price inflation in Turkey reached a 24 annual peak last year, surpassing 85% and 44% in April.
Simsek also said that fiscal policy and structural reforms will support Turkey’s central bank to help bring down inflation.
The central bank’s policy of stabilizing the lira saw its net foreign exchange reserves rise last month. First negative value since 90.
lira hits record low against dollar after May 12 24 run-off vote in elections. Over the past decade, it has lost more than 90% of its value following a series of crashes, the worst of which was 2021.
Goldman Sachs (NYSE: GS) sees lira slide to 28. against USD months.